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Report: CFPB drops enforcement action against debt collector


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Report: CFPB drops enforcement action against debt collector

Acting Consumer Financial Protection Bureau head Mick Mulvaney will not sue National Credit Adjusters, which primarily collects debt for online lenders operating on tribal land, Reuters reported, citing "five people with direct knowledge of the matter."

An investigation found that the Kansas-based company wrongly collected approximately $50 million, and the CFPB's lawyers had sought to return $45 million to consumers, according to the report. Mulvaney is also reviewing cases against Security Finance, Cash Express LLC and Triton Management Group, which are all based in states where high-interest loans are permitted.

The companies are accused of violating customer rights when attempting to collect debts, among other issues. Spokespeople for the companies declined to comment. A CFPB spokesman did not respond to a request for comment.

In January, the CFPB dropped a lawsuit against a group of California payday lenders connected to the Habematolel Pomo of Upper Lake tribe, Bloomberg News reported. Before the regulator scrapped the case it said it will revisit a rule requiring payday lenders to provide new protections on small dollar loans, auto title loans, deposit advance products and certain high-cost installment and open-ended loans.

The CFPB has not announced any enforcement action since Mulvaney was appointed by President Donald Trump.